Publication Type

Journal Article

Publication Date

1994

Abstract

This paper develops a (stylized Asia-America) Heckscher-Ohlin world economy in which the equilibrium rate of unemployment is endogenous. We examine the impact of various economic shocks on unemployment in the global economy. Harrod-neutral or Hicks-neutral technical progress across all industries in Asia leads to a terms of trade improvement for America but raises America's unemployment rate. Introducing a third country such as the block of former socialist economies results in higher unemployment for both Asia and America. Protection in America lowers American equilibrium unemployment but raises Asia's unemployment.

Discipline

Economics

Research Areas

Applied Microeconomics

Publication

International Economic Journal

Volume

8

Issue

2

First Page

13

Last Page

32

ISSN

1016-8737

Identifier

10.1080/10168739400080010

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://dx.doi.org/10.1080/10168739400080010

Included in

Economics Commons

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